The proposed bond offering is structured across seven tranches with varying maturities, allowing Alphabet to tap a wide range of institutional demand.
Key Takeaways
Alphabet plans a ~$15B bond sale to fund AI expansion.
The deal includes very long-dated debt, up to 40 years.
2026 AI capex is set to nearly double year over year.
The longest portion is expected to be a 40-year bond maturing in 2066, offering an estimated premium of about 120 basis points over U.S. Treasuries.
Beyond the U.S. dollar market, Alphabet has also mandated banks to explore potential debt issuance in British pounds and Swiss francs. These international offerings could include a rare 100-year bond, highlighting the company’s willingness to lock in ultra-long-term capital while rates remain attractive.
The U.S. sale is being coordinated by major Wall Street players, including JPMorgan Chase & Co., Goldman Sachs Group Inc., and Bank of America Corp..
AI spending accelerates sharply in 2026
The financing move aligns with Alphabet’s aggressive capital expenditure plans for 2026. The company has guided for total capex of roughly $175 billion to $185 billion, nearly double its 2025 spending of $91.5 billion.
Those funds are expected to flow primarily into data center construction, high-speed networking, and the acquisition of advanced servers and AI chips. The scale of the investment underscores how critical AI infrastructure has become to Alphabet’s core businesses, from search and cloud services to next-generation generative AI products.
Hyperscalers enter a borrowing supercycle
Alphabet’s bond sale is part of a broader borrowing wave across Big Tech. Hyperscalers such as Amazon, Meta, and Microsoft are collectively expected to spend more than $650 billion on AI-related investments in 2026.
Even enterprise-focused players are tapping debt markets to keep pace. Oracle recently raised $25 billion through a similar bond issuance, signaling that access to capital is becoming a competitive advantage in the AI race.
A shift in Alphabet’s balance sheet strategy
Traditionally, Alphabet relied heavily on internal cash flows and maintained relatively low debt levels. That approach is now changing as the company prioritizes speed and scale over short-term balance sheet conservatism.
By the end of 2025, Alphabet reported total debt of approximately $46.6 billion, a figure that continues to grow as AI investments accelerate. Management appears comfortable using leverage to secure long-term infrastructure that could define the company’s competitive position for decades.
Market reaction signals confidence
Investors initially reacted positively to the news. Shares of Alphabet moved higher after reports of the bond sale emerged on February 9, 2026, suggesting the market views the move as strategic rather than risky.
As the AI arms race intensifies, Alphabet’s willingness to issue long-dated debt sends a clear message: the company is betting heavily that today’s massive infrastructure spending will translate into durable dominance in the next era of computing.
